If the Enron scandal is a sufficient reason to question the morality and the effectiveness of capitalism, what lesson ought we draw from this letter, appearing in today’s Washington Post, from the Comptroller General of the United States?
The largest employer in the world
announced on Dec. 15 that it lost about $450 billion in fiscal 2006.
Its auditor found that its financial statements were unreliable and
that its controls were inadequate for the 10th straight year. On top of
that, the entity’s total liabilities and unfunded commitments rose to
about $50 trillion, up from $20 trillion in just six years.If
this announcement related to a private company, the news would have
been on the front page of major newspapers. Unfortunately, such was not
the case — even though the entity is the U.S. government.To put the figures in perspective, $50 trillion is $440,000 per
American household and is more than nine times as much as the median
household income.The only way elected officials will be able to
make the tough choices necessary to put our nation on a more prudent
and sustainable long-term fiscal path is if opinion leaders state the
facts and speak the truth to the American people.The Government
Accountability Office is working with the Concord Coalition, the
Brookings Institution, the Heritage Foundation and others to help
educate the public about the facts in a professional, nonpartisan way.
We hope the media and other opinion leaders do their part to save the
future for our children and grandchildren.
DAVID M. WALKER
Comptroller General of the United States
Government Accountability Office
Washington
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